Divorce becomes more complicated when you and your soon-to-be ex-spouse own a business together. Businesses require constant care and attention, and they can’t be easily split in half the way funds in a bank or an investment account can.
Your attorney will likely recommend you don’t keep running the business together after the divorce. This rarely works out, especially if you must be in close contact with each other on a daily basis.
Assuming you follow this recommendation, you can handle the business in a few different ways.
Three Options for Divorcing Business Owners
You and your former partner will need to decide who will assume ownership of the business when the divorce process is over. There are three options:
- One of you buys the other out of the business and assumes total ownership.
- You both sell the business to a third party.
- You both agree to close the business.
Start With an Accurate Business Appraisal
No matter which option you pick, finding out how much the business is worth is the starting point for negotiation. To do this, you’ll need an appraisal from someone certified in business valuation. You also need to know how much of the value you own and how much of the business is considered marital property.
You can read more about it on Investopedia here: http://bit.ly/2pdBpsU